Evaluation of the Contribution of Portfolios of New Contributory Pension Scheme on Nigerian Economy (Published)
Pension fund investment is one of the key areas in the new contributory pension fund in Nigeria. One of the major challenges confronting the managers of the PFAs in investment decisions is the dearth of investment outlets which has been spread into various securities. The focus of this study is to evaluate the contribution of portfolios of new contributory pension fund on Nigerian gross domestic product (GDP) and the relationships between the pension portfolios with the Nigerian GDP. The population of the study entails nine (9) years while six (6) years were sampled for study (2007-2012). The parameters like Domestic Ordinary Shares, Federal Government of Nigeria Securities, Local Money Market Securities and Real Estate Property of pension fund for the period under review were used. Statistical tool like Scientific Packages for Social Scientists (SPSS) version 18.0 were used to regress the data and the hypotheses were tested using F-test and Pearson product moment correlation test. Result shows that, Domestic Ordinary Shares, Federal Government of Nigeria Securities and Real Estate Property of pension fund all have positive contributions to Nigerian gross domestic product for the period under review while Local Money Market Securities have negative contribution to Nigerian GDP. We recommended that, there should be more investment of pension fund in Domestic Ordinary Shares, Federal Government of Nigeria securities and Real estate property to boost Gross Domestic Product (GDP) of Nigeria. However, there should be a reduce investment of pension fund in Local Money Market Securities because of its negative impact on the Nigerian gross domestic product as revealed by this study.
Keywords: Contribution, Evaluation, New Contributory Pension Scheme, Nigerian Economy, Portfolios